Today, a range of benefits are offered to startups. However, women entrepreneurs continue to remain in the minority. To reduce the gap and grow women lead initiatives, all the leading financiers in India are providing a variety of loan schemes for women. The best part is that the business loan interest rate under these schemes is low. All public and private sector banks provide loans to women entrepreneurs. Banks offer low business loan interest rates to women to attract them.
These loan options have helped a significant number of women in establishing profit-making businesses all over the country. The key features of business loans for women include lower interest rates and meagre processing fees (sometimes zero), no requirement of submitting collateral or guarantee from a third party. The loan repayment tenure for women may go up to 10 years. This article will focus on providing information on five popular business loan schemes available.
- Stree Shakti Package from State Bank of India:The State Bank of India offers Stree Shakti Package to women-owned businesses. In this programme, there is no requirement of submitting collateral for loans of up to Rs. 50 lakhs. Furthermore, the interest rates offered are lower than the bank’s base rates and is made available to businesses in which the women own a stake of 51% or more.
- Cent Kalyani from Central Bank of India:Central Bank of India offers the scheme to women entrepreneurs for starting a new business or expanding an existing one. The bank does not charge a processing fee on loan. Also, the bank offers loans up to Rs. 1 crore without any requirement of collateral. Females who are in MSMEs, retailing and government-backed firms, rural and cottage industries can avail these business loans for women.
- Sind Mahila Shakti from Syndicate Bank:This scheme from Syndicate bank caters to new women entrepreneurs and the existing ones too. You can avail cash credit to meet the working requirements of your business as a long term scheme. A company can avail these loans if it is owned by one or more women with over 50% stake.
- Shakti Scheme from Dena Bank:The Shakti scheme of Dena Bank covers a wide range of women entrepreneurs. It includes retail trade, education, microcredit, housing, agriculture & allied activities. It also covers enterprises in direct/indirect finance, services sector, and manufacturing. The loans are made available with no processing fees and a rebate of 0.5% on loans up to Rs. 5 lakhs.
- Shringaar and Annapurna from Bhartiya Mahila Bank:Bhartiya Mahila Bank provides a wide range of business loans for women. Two of the most popular schemes of the bank are Shringaar and Annapurna. The Annapurna programme caters financial aid to food catering ventures owned by women that sell lunch packs, while the Shringaar programme provides women in financing setup of a beauty parlour.
There are various loan options available to women that are made specially according to the requirements of the sector in which they are working. These are beneficial for women when setting up a good business. It also brings women into a healthy work culture by attracting them to come forward to work and participate in the economy. The various schemes from banks attract women entrepreneurs by providing low business loan interest rates. The market is full of possibilities for women; they need to step out and help in growing the economy of the country.